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Debt Obligations
 6 Months Ended
Aug. 02, 2024
Debt Disclosure [Abstract]  
Debt Obligations
Note 7—Debt Obligations:
The Company’s debt as of the dates presented was as follows:
 August 2, 2024February 2, 2024
 Stated
interest
rate		Effective
interest
rate		PrincipalUnamortized
debt
issuance
costs		NetPrincipalUnamortized
debt
issuance
costs		Net
   (dollars in millions)
Term Loan A Facility due June 20276.69 %6.81 %$1,168 $(3)$1,165 $1,199 $(4)$1,195 
Term Loan B Facility due October 2025— %— %— — — 328 (1)327 
Term Loan B2 Facility due March 2027
— %— %— — — 182 (2)180 
Term Loan B3 Facility due February 2031
7.22 %7.38 %509 (4)505 — — — 
Senior Notes due April 20284.88 %5.11 %400 (3)397 400 (3)397 
Revolving Credit Facility due June 20276.69 %6.69 %100 — 100 — — — 
Total debt
  $2,177 $(10)$2,167 $2,109 $(10)$2,099 
Less current portion  197 — 197 77 — 77 
Total debt, net of current portion
  $1,980 $(10)$1,970 $2,032 $(10)$2,022 
As of August 2, 2024, the Company had a $2.7 billion secured credit facility (the Credit Facility) consisting of a Term Loan A Facility due June 2027, a Term Loan B3 Facility due February 2031 (together, the "Term Loan Facilities"), and a $1.0 billion Revolving Credit Facility due June 2027 (the "Revolving Credit Facility").
On February 8, 2024, the Company executed the Sixth Amendment to the Third Amended and Restated Credit Agreement ("Sixth Amendment"), which established a $510 million senior secured term loan credit facility ("Term Loan B3 Facility due February 2031"). The entire Term Loan B3 Facility due February 2031 was immediately borrowed by the Company and the proceeds were used to pay in full the outstanding principal balances under the Term Loan B Facility due October 2025 and Term Loan B2 Facility due March 2027. The Tranche B3 Facility is subject to the same covenants and events of default as the Company's existing Term Loan Facilities.
Borrowings under the Term Loan B3 Facility due February 2031 amortize quarterly beginning on July 31, 2024 at 0.25% of the original borrowed amount with the remaining unamortized balance due in full upon its maturity on February 8, 2031. Borrowings will bear interest based on the Term Secured Overnight Financing Rate ("Term SOFR") or a base rate, plus an applicable margin of 1.875% for Term SOFR loans and 0.875% for base rate loans. In the event any portion of the Term Loan B3 Facility due February 2031 is repaid prior to August 8, 2024 as a result of a repricing event, the Company will be required to repay a 1.00% fee of the amount repaid. After this initial six month period, the Term Loan B3 Facility due February 2031 may be prepaid at any time without penalty and is subject to the same mandatory prepayments, including from excess cash flow, as the Company’s existing term loans under the Credit Facility.
During the six months ended August 2, 2024, the Company incurred $5 million of debt issuance costs associated with the Sixth Amendment, of which $3 million was recognized in interest expense and the remaining $2 million deferred and amortized to interest expense through the maturity date of the facility utilizing the effective interest rate method.
During the three and six months ended August 2, 2024, the Company made scheduled principal payments of $16 million and $31 million, respectively, on the Term Loan A Facility due June 2027 and made a scheduled principal payment of $1 million on the Term Loan B3 Facility due February 2031.
During the three and six months ended August 2, 2024, the Company borrowed $380 million and $570 million, respectively, and repaid $280 million and $470 million, respectively, under the Revolving Credit Facility. As of August 2, 2024, the outstanding principal under the Revolving Credit Facility was classified as current portion of debt on the condensed consolidated balance sheets. Subsequent to quarter end, the Company repaid $50 million on the Revolving Credit Facility. Commitment fees for undrawn amounts under the Revolving Credit Facility range from 0.125% to 0.25% per annum based on the Company’s leverage ratio.
As of August 2, 2024, the Company was in compliance with the covenants under its Credit Facility.
As of August 2, 2024 and February 2, 2024, the carrying value of the Company’s outstanding debt obligations approximated its fair value. The fair value of debt is calculated using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s Term Loan Facilities and Senior Notes.
Maturities of debt as of August 2, 2024 are:
Fiscal YearTotal
(in millions)
Remainder of 2025
$148 
2026113 
2027128 
2028896 
2029406 
Thereafter486 
Total principal payments$2,177